Financial highlights

• Revenue amounted to €44.5 (Q4 2023: 44.3) million for the fourth quarter of 2024 and €176.4 (2023: 173.3) million for the period January to December of 2024
• EBITA (acq) for the fourth quarter of 2024 was €7.1 (8.5) million, at a margin of 16.0% (19.2%), and €25.3 (25.2) million, at a margin of 14.3% (14.6%), for the period January to December of 2024
• Operating profit (EBIT) for the fourth quarter of 2024 was €5.9 (7.2) million, at a margin of 13.3% (16.1%), and €20.1 (20.0) million, at a margin of 11.4% (11.5%), for the period January to December of 2024
• Total expenses for the fourth quarter of 2024 were €38.5 (37.1) million, and €156.3 (153.3) million for the period January to December of 2024
• Cash flow (excluding working capital and M&A) amounted to €6.7 (5.5) million for the fourth quarter of 2024 and €25.9 (15.0) million for the period January to December of 2024
• Earnings per share for the fourth quarter of 2024 were €0.170 (0.182) and €0.515 (0.488) for the period January to December of 2024
• Kambi estimates EBITA (acq) to be €20-25 million for 2025

Key highlights

• Signed landmark Odds Feed+ partnership with leading US operator Hard Rock Digital and launched in multiple US states
• Launched on day one in recently regulated Brazil and now live with multiple partners including new partner Stake, as well as BetMGM, BetWarrior, KTO and Rei do Pitaco
• Entered contract novation agreement to assume FDJ Group’s sportsbook partnership responsibilities to Ontario Lottery and Gaming Corporation
• Secured licensing approval to provide B2B sports betting products and services in Nevada, showcasing Kambi’s ability to meet the highest standards of regulatory compliance
• Long-term operator trading margin expectation raised to 9.5-11.0%, driven by increased engagement with higher-margin products and Kambi’s AI-powered trading capabilities

CEO comment

“The final quarter of 2024 was marked by significant achievements for Kambi. We concluded the year with new partner agreements across the majority of our product portfolio, initiated actions to address our cost base and delivered robust Q4 2024 financial results.

Revenue for the quarter reached €44.5 million, bringing full year 2024 revenue to €176.4 million, a slight increase on the previous year. Our Q4 performance was bolstered by a 10.1% operator trading margin, which has been consistently strong in recent quarters. This is driven by increased engagement with higher-margin products and our growing ability to efficiently trade these complex products through our proprietary AI technology. As such, we are raising our long-term trading margin expectation to 9.5-11.0%.

We continue to work towards diversifying our revenue streams, as reflected by various partner signings and launches in recent months. On 1 January, we went live in Brazil with KTO, signed in Q3 2024, as well as Stake, signed just last month. Both KTO and Stake are utilising Kambi’s Turnkey Sportsbook in Brazil, along with BetWarrior and LeoVegas, the latter launching its BetMGM brand as part of a joint venture with Brazilian media company Grupo Globo.

Our Odds Feed+ product has also seen early success, currently integrated with Rei do Pitaco in Brazil and Hard Rock Digital in various US states. Launched in September, Odds Feed+ has received positive feedback from partners and generated significant interest from large operators using their own sportsbook technology. I believe Odds Feed+ will eventually become the go-to odds feed product for major operators around the world. Elsewhere, we have seen Esports go from strength to strength with a number of partnerships, including Kindred Group and Svenska Spel, while we also secured a Front End partnership through Shape Games with Choctaw Nation of Oklahoma.

Furthermore, we recently entered a contract novation process to assume FDJ Group’s responsibilities for the provision of an online and retail sportsbook to Ontario Lottery and Gaming Corporation (OLG), subject to conditions. While there remains some work to do to get this over the line, I have no reason to doubt we will soon be celebrating a great partner signing. OLG has a fantastic reputation in the Canadian province of Ontario where, until recently, it held the monopoly for sports betting. OLG has a large existing retail business with an exciting growth opportunity in its online business where OLG has faced increased competition since re-regulation in 2022. I believe with a sportsbook of Kambi’s quality, combined with OLG’s local market knowledge and reputation, OLG can grow its online market share.

These new signings, in combination with those launched during 2024, will provide a tailwind for driving revenue in the year ahead, including full-year contributions from LiveScore and Svenska Spel for the first time and growth in the Brazilian market. I’m also confident we will continue to build a more diverse portfolio of partners across our product suite, further improving revenue as well as reducing the impact of inevitable customer churn.

However, this year won’t be without significant challenges, with 2025 presenting a particular set of headwinds, which we expect to ease going forward. These include certain partners, particularly Kindred and LeoVegas, migrating away from our Turnkey Sportsbook, as well as rising taxes such as the recently proposed temporary VAT in Colombia. As previously announced, we are actively taking action to manage costs and are continuing to diversify our revenue streams through product expansion. The financial guidance we have provided today reflects this, with EBITA (acq) in the range of €20m-25m for 2025.

Looking further ahead, the strategic initiatives we have undertaken – advancing AI innovation, expanding our product portfolio and initiating a cost efficiency programme – along with our various partner signings, provide a solid platform for the future. The foundations we are building today will enable us to emerge stronger, more agile and well-positioned for long-term growth.”

You are invited to participate in a web presentation at 10.45 CET with Kambi Group plc’s CEO Werner Becher and CFO David Kenyon. The presentation will be held in English and can be accessed using the link below. After the presentation there will be the opportunity to ask questions.

Link to the webcast:

https://kambi-group.events.inderes.com/q4-report-2024

Dial-in number to the teleconference will be received by registering on the link below. After the registration you will be provided phone numbers and a conference ID to access the conference: https://conference.inderes.com/teleconference/?id=50051845

Link to report page: https://www.kambi.com/investors/financial-reports-and-presentations/